TITLE
Recommendation to approve the Fiscal Year 2024 (FY 24) Action Plan for the expenditure of Community Development Block Grant (CDBG), Home Investment Partnerships Program Grant (HOME), and Emergency Solutions Grant (ESG) funds; and
Authorize City Manager, or designee, to execute all necessary documents with the United States Department of Housing and Urban Development, and other entities, to receive these funds and execute agreements necessary to implement and comply with related federal regulations. (Citywide)
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) requires the City of Long Beach (City) to develop and submit a Five-Year Consolidated Plan (Consolidated Plan) and an annual Action Plan that furthers the goals established in the Consolidated Plan for use of Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), and Emergency Solution Grant (ESG) funds. The current Consolidated Plan was approved by the City Council and HUD in 2022 and is valid from October 1, 2022 through September 30, 2028.
As part of the entitlement submittal to HUD, the City, in conjunction with the Long Beach Community Investment Company (LBCIC), has developed the Fiscal Year (FY) 2024 Action Plan (Attachment A). The Action Plan describes the resources, programs, and activities the City will undertake in the second year of the current Consolidated Plan period to address the needs and implement the programs identified in the Consolidated Plan. The Consolidated Plan provides the parameters for developing the proposed Action Plan budget.
For the FY 24 Action Plan, Congressional appropriations for CBDG and ESG grants have decreased by four percent and the HOME allocation has increased by one percent since FY 23. For FY 24, several budgetary changes are being proposed to funded programs as a response to both the decreased total appropriation amounts as well as activity performance, rate of activity expenditure and impact toward Consolidated Plan goals and priorities. To help meet the highest need established in the Consolidated Plan, Housing Element and while in a State of Emergency on Homelessness, funds for housing acquisition are being increased and prioritized in this Action Plan. Additionally, activities requested by stakeholders, or those that best respond to Consolidated Plan goals and priorities, have proposed budgetary increases for FY 24 and include the Afterschool and Weekend Recreation Program, Senior Meal Services and Sidewalk Improvement in CDBG-eligible areas. Budgetary decreases must be made and are being proposed for activities that underspent in FY 23, including Urban Forestry, Code Enforcement and City Attorney Code Enforcement programs. The decrease in funding proposed will not materially impact service delivery of programs. Lastly, some activities funded in FY 23 will not receive additional funding for FY 24 as these activities have existing carryover funding. The Housing Services and Referrals, Neighborhood Grant Program, Park Facilities and ADU Grant Program are still working to expend funds from last year. The Home Improvement Grant Program, the Enhanced Commercial Façade Program and the Place-Based Neighborhood Improvement Strategy will continue with prior Consolidated Plan funds.
The FY 24 Action Plan describes in detail the proposed programs and services to be funded during the period of October 1, 2023 through September 30, 2024. The following table summarizes the FY 24 Action Plan funding.
FY 24 Action Plan Budget
|
Available Funds |
CDBG |
ESG |
HOME |
TOTAL |
|
New Entitlement |
$5,203,472 |
$477,000 |
$3,111,489 |
$8,791,961 |
|
Program Income |
$60,000 |
$0 |
$1,500,000 |
$1,560,000 |
|
Total Available Funds |
$5,263,472 |
$477,000 |
$4,611,489 |
$10,351,961 |
On April 19, 2023, the LBCIC conducted the first public hearing to establish the basis for developing the FY 24 Action Plan by assessing resources and current Consolidated Plan goals for HUD grants and receiving public input. The LBCIC conducted the second and final public hearing on June 21, 2023, which allowed the LBCIC to solicit final public comment on the FY 24 Action Plan. Multilingual notices regarding the second public hearing and the availability of the draft Action Plan were posted on the City website for public review 30 days prior to this public hearing. Advertisements were published in the Press-Telegram and Excelsior (Spanish newspaper) announcing the availability of the draft Action Plan and details of the public hearing. In addition, stakeholders received an email notice about the public hearing and the availability of the draft Action Plan for review and comment.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on May 31, 2023 and by Revenue Management Officer Geraldine Alejo on June 7, 2023.
EQUITY LENS
The City has incorporated the Equity Toolkit into this recommendation. This recommendation will assist low-income Long Beach residents and businesses located in CDBG areas.
TIMING CONSIDERATIONS
City Council action is requested on July 11, 2023, as the FY 24 Action Plan must be submitted to HUD by August 15, 2023 to receive funding for the new fiscal year.
FISCAL IMPACT
In FY 24, the City will receive $8,791,961 in CDBG, HOME, and ESG entitlement funds and an estimated $1,560,000 in Program Income. These funds are budgeted in the Community Development Grants Fund Group in the Development Services Department through the annual budget process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. These grant funds generate a broad, positive impact on job creation and retention within the community.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
CHRISTOPHER KOONTZ
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER